Small BT pension
in Pensions, annuities & retirement planning
11 replies 458 views
Hi everyone. Wondering if anyone could point out any potential pitfalls to what my cousin, now a resident in New Zealand is considering please?
She has been approached by a company in NZ about transferring a small defined benefit BT pension worth £13,531.36 on transfer.
I thought you couldn't get better than a DB pension? But I told her about this lovely board and that I would ask. I just want her to make an informed decision.
She is 54 and single if that's of relevance?
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How much annual pension would she be giving up for the £13k?
What is the companies fee?
Why does she want to do it at all? There are very limited circumstances where it might be a reasonable idea - but the word 'limited' is key here.
- If she was cold called (and it sounds as if she was), check very carefully whether she is being approached by scammers
- she'll lose the guarantee payments associated with having a DB pension
- she'll be paying transfer-related fees to the company which approached her
- she'll doubtless be encouraged to pay fees to the company to 'look after' her investments
The general information here might be worth a look.
Two points here.
A DB pension ( like this one) are not normally affected by how investments are performing.
In any case investments in the UK are not necessarily directly affected by the current economic issues.
Thanks xylophone I will have a read and send her the link too